Bengaluru and Mumbai have emerged as frontrunners in the leasing of green-certified office spaces, accounting for over 50% of the total leased area across the top six Indian cities in the second quarter of 2024. According to a recent report by Colliers, these two cities alone drove a significant portion of the 13 million square feet of green-certified office space leased during the period.
This represents a notable 24% year-on-year increase in green office space take-up, highlighting a growing commitment towards sustainability within the commercial real estate sector. The report indicates that green-certified buildings comprised a substantial 82% of all office leasing activity in the quarter. The top six cities examined include Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune. Bengaluru and Mumbai’s combined share underscores their pivotal role in the green leasing trend, reflecting a broader national shift towards environmentally conscious real estate practices. Specifically, Bengaluru and Mumbai’s dominance in this segment illustrates their proactive approach to integrating sustainability into their real estate portfolios.
The data reveals that approximately 60% of the green office leases signed in Q2 2024 were in newer developments, constructed within the last five years. This surge in green building leases is indicative of a growing corporate awareness regarding the environmental impact of their office spaces. Companies are increasingly recognising the importance of reducing their carbon footprint and embracing sustainable building practices as part of their corporate social responsibility initiatives. In India, prominent green certifications such as LEED, GRIHA, and WELL are leading the charge in validating buildings’ environmental credentials. These certifications assess a range of factors, including energy efficiency, waste management, and the alignment of building design with health and wellness standards.
The growing preference for green-certified office spaces reflects a shift in corporate attitudes towards sustainability and the role of real estate in addressing climate change challenges. As more businesses seek to enhance their environmental credentials, the demand for green office spaces is expected to continue its upward trajectory, further cementing Bengaluru and Mumbai’s positions as leaders in this crucial sector.
